Samsung To Adopt Blockchain Shipping Platform

There has been a lot of talk of blockchain and its ability to optimize complicated systems, making them more reliable and fast. However, practical implementations of the blockchain system remain not so numerous, at least for the time being.

There has been a lot of talk of blockchain and its ability to optimize complicated systems, making them more reliable and fast. However, practical implementations of the blockchain system remain not so numerous, at least for the time being.

Samsung is one of the companies that made the decision to transfer its logistics system on the blockchain. The company claims that the introduction of the new innovative system will cut the shipping costs by 20%. The announcement was made by Song Kwang-woo, the blockchain chief of the company’s logistical department.

According to Gartner’s forecast, “business value-add” of blockchain will reach $176 billion by 2025 and will continue to grow exponentially, increasing to $3.1 trillion by 2030. If Samsung is successful with its blockchain implementation, the predictions offered by the analytics firm won’t seem so unrealistic.

According to Bloomberg, Samsung is planning to deliver 488,000 tons of air cargo in 2018, which includes company’s latest smartphones and electronic components. Cheong Tae-su, Professor of Industrial Engineering at Korea University in Seoul explained the reasons behind Samsung’s blockchain move:

“A blockchain system may help the company reduce the time lag between product launches and actual shipments, making it easier to respond to rival products and shifting consumer appetites in emerging markets like China.”

According to International Data Corporation (IDC), the projected figure for global Blockchain spending this year is US$2.1 billion.